During the litigation, Cardinal Pell expressed concern to his colleagues about exacerbating the victim's psychiatric condition.

He was today asked whether he was actually attempting to avoid bad publicity as a result of the case.

"That was always one of my concerns, yes, but it was not my first concern," he said.

Cardinal Pell has denied being involved in the day-to-day running of the legal battle with Mr Ellis.

A second man came forward with a complaint about the priest during the litigation

Cardinal Pell admits that would have strengthened Mr Ellis's case, but said he did not discuss it with the lawyers.

Church's approach informed by US litigation

Under questioning by Justice Peter McClellan, it emerged the overall approach taken by the Church was informed by events overseas.

Justice McClellan asked Cardinal Pell if he was concerned that what had happened in America - where there "were very large verdicts and dioceses had gone bankrupt" - should not be a scenario in Australia.

"That is certainly the case, and there are two considerations there," Cardinal Pell responded.

"Australia is not America, there are an enormous number of lawyers there, disproportionate even by Australian standards. And secondly, that whatever standards of damages were to be enforced, they should be equal across all the Australian institutions.